INHERITANCE TAX CHANGES

Big changes were announced in the recent Budget by The Chancellor Alastair Darling to the rules on Inheritance Tax (IHT).

Each individual has their own IHT free slice currently £312,000. If on their death that "top-slice" was unused - by not giving that sum to children or grandchildren for example - then it was lost. However, that rule has now changed.

If that sum is not utilised in whole or in part by a Spouse in his or her Will, then either all of it, if not used at all, or the unused part will be "rolled over" to the second spouse so that on their death not only will they have their own slice of £312,000 that is free of IHT but also their spouse's of another £312,000 making a possible tax free slice of £624,000 before IHT has to be paid. Good news indeed.

However, if you are in the very wealthy bracket (leaving potentially over £1,000,000 in your estate, then there are still measures and steps that can be taken to reduce still further your or your spouses potential IHT Bill (or rather those you name as beneficiaries in your Wills!). Speak to us about ways and means of defeating the tax man !